Corporate Strategies to beat the Downturn: Cutting Slack and Layoffs
February 12, 2025
Knowledge management has been a buzzword amongst modern day companies for a few years now. However, many companies are still skeptical about investing significant sums of money in a knowledge management system. This is because the return on knowledge management can be difficult to measure. When companies undertake other cost-cutting or business improvement activities, the […]
Agile is a mindset and approach initially developed for the software industry to enhance flexibility and responsiveness in project management. Agile comprises group of methodologies that focus on collaboration, continuous improvement, adaptability to change, and iterative progress. This iterative methodology breaks projects into various phases called sprints to facilitate continuous improvement. Agile methodology is a […]
The previous articles discussed the role of the HRD function from a wide variety of perspectives. We have seen how the HRD function is pivotal to the success of contemporary organizations. This article compares the HRD function with regards to its relevance and operation in the manufacturing and service sectors. Before launching into the salient […]
In recent years, many business schools in China, Singapore, and India apart from other Asian countries have been offering one year or two year executive management programs. These programs are aimed at mid-career managers who wish to upgrade their managerial skills or who want to change careers midway. The main advantage of these executive management […]
Linkedin Advises: When you log in to your LinkedIn account, it sometimes comes up with a suggestion whether you are willing to endorse some of your connections for certain skills or not. In this case, you do not have to think much about which skills you need to endorse people for. A pop-up shows at […]
Compensation system involves the total rewards that are given to the employees for the labour and services they provide to the organization. Compensation includes direct monetary benefits as well as indirect monetary benefits.
Wages and salaries form the direct financial benefits that an employee receives from his or her company. Besides, wages and salaries, bonuses and commissions also form a part of the direct monetary benefits. The indirect monetary benefits include paid absences and other leave benefits, retirement plans, employee insurance schemes, health plans, education benefits and other such benefits.
A well-defined and balanced compensation system gives the organization an advantage of maintaining internal as well as external equity. It is a powerful tool for attracting employees, motivating them to work in achieving the strategic organizational goals, and retaining them in the long run. An HR Consulting Firm can provide an in depth analysis and detailed report on the setting up of a balanced compensation system for the company.
An organization need to have a clear compensation philosophy which is in line with the strategic goals, objectives and culture of the organization. Based on the compensation philosophy of the company, the various components of compensation are designed and chalked down in detail.
The development of compensation philosophy includes the study of various aspects viz:
Compensation detailing comprises of identifying positions and setting up of wage or salary specifications against each of the position. Also, incentive packages and bonuses, if any, are clearly defined for each of the position while describing the compensation related details.
Compensation detailing may involve execution of following activities depending upon the requirements of the organization:
A compensation study carried out in an organization generally involves following important elements:
Depending upon the requirements of the company, the HR Consulting Firm may take up the necessary aspects required to be considered for development and/or improvement of the compensation system in the organization, thereby, strengthening the compensation system of the company by making it more equitable and attractive.
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